The cryptocurrency markets are known for their volatility. The latest price movements have proven once again that things can go from good to bad in a matter of hours. Thoughts of a possible new “altcoin season” have been circulating for quite some time. However, all prices plunged significantly a few days ago and a recovery seems optimistic at best.
Bitcoin has lost over $2,000 in the last few days, marking a decrease of 21%. The crash didn’t just affect the largest cryptocurrency but the entire market. Some of the well-known altcoins experienced even larger decreases. Ethereum, for example, lost 23.5%, and Litecoin lost around 27%. Among the top 10 cryptocurrencies by market capitalization, Bitcoin Cash and EOS marked losses upwards of 30%.
This may have come as a bit of a shock, as just a couple of weeks ago, people were on about a possible upcoming “altcoin season”. A month ago, alts were seeing significant increases ranging from 7% to 20% in some cases. This reduced Bitcoin’s dominance to less than 70% of the market. These swings caused many to believe in an emerging “altcoin season”, which has been postponed at best.
Naturally, as the last few days were as turbulent as they were, the community started producing fresh predictions and prognoses. As usual, opinions range from the doom of all crypto to the reversal of the trend and new highs ahead. An interesting point was offered by Mr. TA, a popular Twitter analyst. He noted that the last time Bitcoin lost $2,000 rapidly, the price increased substantially in the following weeks.
Bitcoin dropped $2000 in the middle of May and then rallied ~$8000 after
Bitcoin has just dropped another $2000
For all the doom and gloom on here, I think this is great for the market. We’ve dropped into an area where traders/investors want to do business pic.twitter.com/1mPnbKYRMK
— Mr. TA (@Trader_M4tt) September 25, 2019
As PlowBitcoin reported earlier, another very popular Twitter commentator recently claimed that a serious crash is what’s needed for altcoins to boom. Supposedly, Bitcoin’s price has to drop substantially in order for holders to turn away from it and move their investments to altcoins. As difficult as this might be to imagine right now, let’s not forget that just a week ago all coins were in the green, proving that the tide can change in an instant in the crypto market.